OVERDRAFT
An Overdraft is a lending arrangement which allows members to get small amount of money equivalent to their monthly net salaries but not exceeding 2 millions and being repaid in short term, not over 3 months. It may be also an additional facility to non-salary earners which allow them to cover normal operational costs; and it is disbursed based on their repayment capacity and security offered.
Targeted Members
Individual employed members working in the health sector in Rwanda (public and private);
- Self-employed members of MUGANGA SACCO, Cooperatives, association, companies of members operating small scale businesses.
Benefits
- Quick loans, rapid and flexible to access (not exceeding 2 days);
- Financial facility to overcome liquidity problems;
- Turnaround time of 2 days;
- Allow the employee to easily get their full salary before it is credited to their account;
- Allow non-employees (Non-salaried with projects to quickly obtain cash funds to cover normal short-term operational costs.
Eligibility Criteria
- Being a member of Muganga SACCO for at least 1 month;
- Regular compulsory savings;
- Being registered in Muganga SACCO Mobile Banking;
- The salary to be channeled at Muganga SACCO for at least 3 months;
- Having paid membership fees in full (Frw 50,000 of share capital)
- Have an employment contract (not in probation);
- Having 18 years old (Minimum);
- Having regular income for self-employed (Business, Rental, livestock, etc…….) and be channeled to Muganga SACCO at least 3 Months;
- Must not have loans in arrears in MUGANGA SACCO or any other financial institution in Rwanda (blacklisted by Credit Reference Bureau/Transunion).
Products Features
- Maximum amount is Frw 2,000,000;
- Repayment term is 3 months (Max);
- Interest rate is 60% per annum (declining)
- Repayment capacity is 50% of the monthly net salary. If combined with other commitments, it cannot exceed 75% of the net salary;
- Repayment is monthly (Capital + interest);
- Turnaround time (TAT): 1 day.
Requirements
- Fulfil and Sign Overdraft Loan application and loan agreement form;
- Copy of Identity card/Passport
- Salary certificate and employer engagement (found at our website);
- Loan commitment form;
- Subcommittee recommendation letter;
- Employment contract or appointment letter;
- Proof of income for self-employed members (proof of financial needs);
- Account statement of other for at least 12 Months for self-employed members;
- Tangible collateral of compulsory savings for self-employed members;
- Any other document requested by credit department to support member’s request;